The honeymoon period of the relationship between Macy’s Inc. and Martha Stewart Living Omnimedia Inc. seems to be over. JCPenney has agreed to start selling the Martha Stewart Living Collection in coming months, and Macy’s Inc. is filing for an injunction stating that this would be a breach of contract.

The New York Supreme Court is set to hear the case brought by Macy’s, who says their contract guarantees sole rights on the sale of the Martha Stewart Living Collection through 2018. If the collection were to be sold at JCPenney as well, Macy’s says the monetary harm would be insufferable. Billions of dollars are at stake if JCPenney is able to move forward with its relationship with Martha Stewart Living.

Martha Stewart Living sold a portion of the company to JCPenney in December and entered into a 10-year contract during which the collection would be sold in JCPenney.

A spokeswoman for Martha Stewart Living said that the company is not violating the contract it has with Macy’s Inc. because it would be selling a different variety of products at JCPenney. The company would also be operating as a store-within-a-store, which is run differently than JCPenney simply selling Stewart products.

This is not much of a consolation for Macy’s, Inc. which cannot understand why Martha Stewart Living thinks that entering into a new contract with a directly competing company would be an okay thing to do, given their exclusive contract.

JCPenney is to begin selling the collection’s products in a year, unless the injunction is put in place. It would be a temporary injunction at first, and Macy’s would then be able to file for a permanent injunction that would align with the contract.

Questions regarding this case or a New York breach of contract in general can be directed to the Law Offices of Jonathan M. Cooper. These experienced New York business lawyers offer free consultations over the phone or online.